If you are a small business owner recently impacted by a disaster, it can feel like there is no help available. However, small business owners must understand emergency express relief is available in express bridge loans (EBL). Still, understanding what an EBL is and who is eligible can be difficult. Luckily, at villaNOVA, we’re here to help. As the premier insurance brokerage, our top priority is your security. More importantly, we are committed to finding you the perfect solution for your unique circumstances.
If you’re asking yourself, ‘What is an EBL?’ We have the answers:
Firstly, it’s crucial to understand what an express bridge loan is. Created in 2017, EBLs are a direct loan assistance program for small businesses impacted by disasters.
Essentially, these loans are quick and effective emergency bridge loans to help small businesses recover from disaster-related losses in disaster areas. When businesses apply for an EBL, they can receive up to $25,000.
However, the amount you receive is contingent on several factors. Moreover, the max loan term is seven years. Ultimately, EBLs are a midpoint between small businesses’ immediate expenses and needs and longer-term loans.
An EBL’s most distinguishing feature is its rapid turnaround time compared to other types of loans, which guarantees delivery within 45 days of approval. Moreover, while these loans still must be applied for through private lenders, the SBA pays for them.
Understanding the nuances of an EBL loan can be difficult alone. Luckily, at villaNOVA, we guarantee to give you a comprehensive understanding of EBLs and all your options.
When considering what an EBL is, it’s imperative to understand who is eligible. Firstly, only small businesses qualify for express bridge loans.
You must also demonstrate you are not eligible for similar loans through non-federal sources. This is known as the ‘credit elsewhere’ caveat. However, if you can demonstrate you’re only eligible for some of the funds you need, you may still qualify.
For example, if you can demonstrate that you can receive $15,000 of the necessary $25,000 loan elsewhere, you may still qualify for $10,000 in an express bridge loan. Only businesses in counties declared disaster areas under the Presidential Disaster Declaration are eligible.
More importantly, if you don’t have a preexisting relationship with an SBA express lender, you cannot apply for an EBL. Lastly, what constitutes a small business can be complicated, and this is determined by three factors: dollars in revenue, number of employees, and industry.
Determining if you’re eligible is daunting, and if you need emergency relief, you have enough on your plate. Luckily, we’ll help determine if you qualify and secure the help you need.
After you understand the answer to the question, what is an EBL, you must understand how to use the money you receive.
Your bridge loan should compensate for financial gaps and disparities that result from disasters. Essentially, an express bridge loan should only be used as working capital to aide a business impacted economically by a disaster.
The loan provides broad terms for how small businesses can use their loan money. Unlike other emergency relief loans, EBLs can be used for any operational expenses that are critical to the continuation of your business.
Disasters devastate businesses and business owners alike. Especially for small businesses, a lapse in business operations is unacceptable. Fortunately, now that you know what an EBL is, you know help is out there. As the premier insurance brokerage in King of Prussia, Pennsylvania, at villaNOVA Insurance Partners, we guarantee to find the perfect solution for you and your business, even if you don’t qualify. Contact us now for a consultation!